Process mining in financial transactions – 3 key benefits

Financial institutions are responsible for managing various customer service needs and requests

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Michael Hill
01/10/2024

Process mining paints an objective, definitive picture of how processes operate by combining process modeling and data mining. Evolving from an academic concept into a popular software-based technology, process mining can provide end-to-end transparency and visibility for visualizing, analyzing and optimizing processes.

Financial institutions are responsible for managing a range of customer service needs and requests such as account openings and modifications, deposits and withdrawals, loan applications and investment activities. At the same time, they face having to juggle issues such as administrative complexity, data security and privacy and risk management.

When applied to financial transactions, process mining can deliver notable benefits. These include personalizing the customer experience and driving new product sales, simplifying estate settlement and expediting asset transfer and ensuring compliance with regulatory requirements.

READ: 3 ways process mining accelerates digital transformation

Personalizing customer experience and driving new product sales

Financial customers tend to have high expectations. For example, they want prompt and accurate handling of account changes and withdrawals. Likewise, if a loved one or family member passes away, taking care of their estate and financial assets can be a complicated process for both executors and inheritors. Improving the customer experience during such a crucial time is key.

Process mining can be used to monitor customer retention rates, take necessary action to retain customers early in the process and automate critical client touch points to reduce cycle times.

READ: Process intelligence for operational excellence: 2024 industry report

Simplifying estate settlement and expediting asset transfer

Empirical data drawn from processes allows managers to focus on fact-based decision making and objectively prioritize improvement opportunities. Process intelligence enables banks and other financial institutions to drive digital transformation, analyzing transaction data in near-real time to improve increase reporting accuracy and reduce the risk of costly errors. What’s more, processes can be kept from becoming stagnant by monitoring KPIs in real time.

Ensuring compliance with regulatory requirements

Financial institutions must comply with strict laws and rules. Anti-money laundering (AML) regulations, for example, are mandated by both national and international authorities around the world. They place a wide variety of screening and monitoring obligations on financial institutions. Know your customer (KYC) is one of the AML measures used by organizations to collect information about their customers and verify their identities.

Process monitoring helps financial organizations ensure that service-level agreements (SLAs), compliance mandates and legislative requirements are maintained, reducing the risk of costly mistakes that might otherwise be overlooked.

Learn more about process mining in financial transactions by joining this upcoming webinar from ABBYY, a leader in AI-based intelligent document processing and process mining technologies.